Commercial, Distributed Energy Resources, Energy Efficiency, Microgrids, Regulation - July 14, 2016
Plans for an 'off-grid' residential complex scrapped by NYC developer
The developer of residential complex in New York City that was intended to be energy independent has cancelled the project, citing the expiration of a key tax incentive, Politico recently reported.
Smart Energy Decisions first reported on plans for the Durst Organization's Hallets Point development — which was supposed to feature a state of-the-art cogeneration plant that would have enabled the development to generate its own electricity, hot water, heating, and cooling onsite, independent of the local electric grid —in January. Politico reported July 8 that the Durst Organization has scrapped its plans for the development citing the expiration of a tax incentive known as 421-a.
The tax incentive, which gave New York City developers property tax exemptions in exchange for including affordable housing in new developments, recently expired after a political tug-of-war over wage requirements for construction workers.
Once the law expired, the Dursts drastically reduced the scope of their once-$1.5 billion, more-than-2,000-unit Hallets Point plan. The family announced it was moving ahead with just one of the five planned buildings, because only one of them had a foundation in before the law expired and therefore qualified for 421-a. That means that, at least for the time being, there will many fewer apartments (400 instead of 2,000), many fewer below-market-rate apartments (about 80 instead of 483) and no more energy self-sufficiency.
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